One of the defining marks of a Said Musa's tenure as prime minister has been that he's always been accessible to the press. Sure, he's shrugged us off a few times, but nothing com pares to the past 5 weeks of profound financial and executive crisis when the prime minister has avoided all media encounters. Since august third, the prime minister has not given an interview. But today he broke that long and stony silence when he took the media's questions for 33 broiling minutes at the central bank conference room. 7 news was front and center and here's what the pm had to say:
Jules Vasquez Reporting
Hon. Said Musa – Prime Minister
“The primary objectives for this are to ensure the safety of the funds of the SSB.”
Get back the money! That's what Musa, flanked by four ministers, two of them the unusually relaxed looking G7 members Mark Espat and Eamon Courteany agreed to in a meeting with the unions and business representatives the so called social partners, who came to the session with a list of demands. The prime minister committed to those demands, mainly that there will be public senate hearings on Social Security with particular attention to loans and securitizations.
Hon. Said Musa
“That there will be a full scale senate hearing on the Social Security investment portfolio. Such investigation in review will encompass: (a) the gathering of all documentation pertaining to the above investments, loans, securitization and guarantees. (b) Interviews of any and all persons connected with the said BSSB programs and any other persons within the public service or other statutory bodies whose information may be material. (c) to determine where if any proper procedures or regulations were not followed or any process as determined by law were circumvented to determine person or persons that may be responsible for such breach. (e) To recommend any corrective action necessary the legislation, regulations or procedures to prevent recurrence. And (f) to recommend any action to be brought against any person or persons if applicable for any misconduct or violation of the law.”
Jules Vasquez
“are you prepared, this is a question, to testify before the senate?”
Hon. Said Musa
“If I’m so requested, Yes.”
And he may be called as minister of finance during the time when social security guaranteed tens of millions of dollars for Intelco. But today prime minister Musa said that Social Security never acted just to fund Glenn Godfrey's private business investment.
“It's easy enough to make comment, to make editorial comment about what appears to be the case that this was some kind of favorite deal done for a former minister of the government. The truth of the matter is as far as I am concerned that the social security board was, if you like, impelled in this process because of trying to carry out government's Maco-Economic policy.”
“What do I mean by that?”
“We were committed from day one and I think the people of Belize voted for this, to a process of doing everything possible to bring down rates in telecommunicates.”
“We saw rightly or wrongly that the way to go about that was to try and create competition in the industry. With hindsight we might say we went about it the wrong way, fair enough, but that was the sincere commitment to do whatever was possible to create this climate of competition to drive down rates in telecommunications.”
“In the process, yes, I’m prepared to accept that due prudence, due diligence may not have been practiced in every instance but I don’t think that you should draw from that a conclusion simply because he was a former minister of government. Or that whatever we’ve done, whether through Social Security or any other institution of government agency was simply to help PUP friends.”
"My immediate priority at this time is to ensure that whatever funds were loaned or securitized or approved for any of the Godfrey companies that those loans will be recovered. That Social Security will not lose any money in the process”
"Like for instance with the Intelco matter. We are giving it as a matter of priority that the government needs to recover all that Social Security has exposed in that area. If you look at the principal it is about 31 million. If you look at the amortized payments that have to be made it will be about 40, 41 million thereabouts.”
Adele Ramos - Amandala
“What portion of Intelco’s loans and Glenn Godfrey’s loans are guaranteed by the government of Belize?”
Hon. Said Musa
“I honestly don’t have those figures before me.”
Leaked documents suggest that figure may be in excess of 100 million dollars. It's quite a situation and one made worse for Social Security by the fact that the insolvent DFC also owes social security 43 million dollars which it hasn't paid anything on for 13 months:
Jules Vasquez
“A decision was made when you were minister of finance, one assumes, that SSB should stand for these debts of the DFC which was clearly headed, if not already not in a state of ruin, headed on a road to ruin. A decision was made to take the workers’ money and hold it as a guarantee for DFC which was on a perilous course. Who made that decision? Why was that decision made? Why weren’t people told? And now it’s 13 months even in they do pay it is a sign of reckless management of the workers’ money.”
Hon. Said Musa
“My understanding is that that was a decision of the Social Security Board when they were looking at the whole securitization.”
Jules Vasquez
“In line with the Macro-Economic policy”
Hon. Said Musa
“But I accept full ultimate responsibility, whatever was done by government or any of the government agencies. I’m not trying to… I don’t exactly remember the exact period when that process began.”
Jules Vasquez
“Do you accept that it was an imprudent and reckless decision with the workers’ money to imperil it in such a way?”
Hon. Said Musa
“I do not. I believe you have to examine each mortgage.”
Jules Vasquez
“Why was government so eager to close that sale? And is that not an act of bad faith when you said we are no longer making private investments but you can make a doubtful public investment?"
From one doubtful investment to another, the prime minister defended Social Security's recent 7 million dollar acquisition of two thousand acres of undeveloped land from the government on northern Ambergris Caye:
Jules Vasquez
“Social Security as I understand it refused to renew a term deposit at the Scotia Bank and opted instead to invest in land being sold by the government some 7 million in northern Ambergris Caye, which although I haven’t seen it and I believe perhaps you haven’t either, we know that it does not have beach frontage and it is investing in real estate which is basically speculation. Why was government so eager to close that sale and is that not an act of bad faith when you said we’re no longer making private investment but you can make a doubtful public investment with a long term yield instead of keeping the money safely in the bank?”
Hon. Said Musa
“Well first of all my understanding is that that proposal that came from government, from the financial secretary, was long before even my statement. It was in the board for some weeks before. That was my understanding. The decision was taken, when you mention it, I was not aware even that it was being considered by the board quite frankly.”
Jules Vasquez
“But it had been reported sir.”
Hon. Said Musa
"I wasn’t aware until it was actually reported. I’m saying that in the case of the 3 thousand acres which you are talking about held by Social Security Board or bought by Social Security Board in northern Ambergris, recent sales of land in this area of Ambergris by the San Pedro town board, and we have evidence of this, is in the range of 12 thousand dollars per acre. Almost 3 times what the Social Security paid per acre for this same land. I think you need to bear this in mind. I keep hearing all this talk about swamp land and all this. It’s not all swamp land, please. You do have….”
Jules Vasquez
“It contains swamp”
Hon Said Musa
“It contains swamp. That’s a different statement.”
Jules Vasquez
“However….”
Hon. Said Musa
“And I’m saying that in the vicinity of this land the San Pedro town board has bought land and sold land in the vicinity of 12 thousand dollars per acre.”
It would be good if that were the case but when we checked with the UDP town board today they said the most they have sold land in that area for is 1,500 per acre, not 12 thousand dollars and as for the sale, it was reported on channel 7 on August 4th. 8 days before the prime minister statement, and two weeks before Social Security actually paid for it. Meaning that if anyone wanted to stop it in that time they certainly could have.
According to independent realtors in San Pedro, such land is located in what is known as the Pinkerton estate area. It is estimated to have a value of at the most 3 thousand U.S. dollars per acre. And while the prime minister has agreed with the social partners to a commission of inquiry, the opposition does not agree. Speaking with us this evening, opposition leader Dean Barrow claims that the partners zigged when they should have zagged.
Hon. Dean Barrow – Leader of the Opposition
“What people want is a completely independent inquiry. And by that we understand people to mean an inquiry with a membership that does not include politicians of either stripe. It does seem to us that what the social partners have agreed with government misses the boat.”
“Any findings of the senate sub-committee will have to go to the full national assembly for consideration and such action as may be appropriate. That’s a formula for nothing to happen. A commission of inquiry, again why reinvent the wheel? A commission of inquiry, there is a commission of inquiry act that gives teeth to any commission of inquiry and the way the practice has developed certainly in the rest of the Caribbean commissions of inquiry that find wrongdoing that might seem to sustain criminal action pass their findings over to the director of public prosecutions who the normal course will act. The director of public prosecutions is not subject to any directions from the national assembly because the national assembly is composed by politicians and the director of public prosecutions under the constitution is supposed to be independent.”
“This was always our position that we would allow them to dictate the pace. We felt that in that fashion whatever solution was arrived at could be seen by the public as not bearing the political tint. I’m saying, be careful of what you wish for you just might get it. In fact we have succeeded handsomely in putting them in a position where they were able to call the tune. It’s just that the particular tune that they have called we don’t think is the best way to go.”
And while barrow doubts on the social partners' decision to go with senate hearings, that we've even gotten this far is a testament to the power of the press and the hard line laid down by the G7. They may have slipped from the headlines, but the G7 was very much in the mix of things at today's event. And for the first time since the August 12th. Crisis, Jose Coye and Eamon Courteany had a few sparing comments on their decision to re?enter cabinet.
Hon. Jose Coye
“We had expressed our concerns about the financial management. Those concerns have been listened to and they are being addressed and therefore we carrying out what we had asked to do.”
Jules Vasquez
"Should this not have been the case long ago this crisis, I believe, had been foretold or I had foretold it two years ago and certainly was foretold a year ago. Should this not have been the approach from the outset where a committee of people like yourselves who are interested and willing to work took the responsibility and if that was the decision then why was it not taken then? Why is it being taken now that the crisis is significantly enlarged?”
Hon. Jose Coye
“Well certainly Jules it would have been my preference that it should have been taken then. It should have.”
Jules Vasquez
“So it was a mistake to not take it?”
Hon. Jose Coye
“I believe So.”
Hon. Eamon Courtenay
“I believe that the prime minister has brought us back into the cabinet and has set up the committee in order to approach the issue in a collective way. I think we have started in that process. There is a tremendous amount of work that needs to be done and I hope we’ll get it done as quickly as possible."
The prime minister also had to speak on the ouster of Johnny Briceno as the leader of the northern caucus. The deputy party leader returned to the country today, significantly less powerful than he left it, as he finds himself exposed as a minority in the north, and alienated from what had once been his power base. Today the PM disavowed any involvement in his dethronement.
Hon. Said Musa
"The northern caucus is strictly an internal matter of the party in accordance with its constitution. Each caucus and there are several caucuses in the party, has the right to choose it's own chairman. The honourable John Briceno is the deputy prime minister and he retains my full confidence.
Jules Vasquez
"Would you be able to say how this group of seven feels about the public emasculation of their nominal or figurative leader being the deputy prime minister?
Hon. Eamon Courtenay
"No"
Jules Vasquez
"Cannot speak on it."
Hon. Eamon Courtenay
"I cannot speak for the Group of 7"
Presently the group of 7 including deputy Briceno is part of a public finance commitee that is making a full review of all government indebtedness and devising a plan to keep an imperiled economy afloat. It's a monstrous and complicated task made more daunting by the fact that within the last year, govenrment borrowed 36 million U.S. dollars on a one year term just so that it could stay afloat. That's a massive undertaking, and we asked the prime minister if it is indicative of a full blown crisis:
Jules Vasquez
"Can you speak about the short term loans taken by RBTT and IBOM at the start of this year for, i understand, 36 million U.S. In terms of why were these taken? Were these taken with a view to someday... How were these every going to be paid for? They are on a 1 year term. How were they every going to be paid for? Or was it taken in the clear knowledge that we would have to float a bond to cover all this."
Hon. Said Musa
"I believe they were taken in the context of a bond being floated and as you know that did not pan out. But they were taken obviously for budgetary support. I don't think that there is any other explanation.
Jules Vasquez
"So 36 million in short term loans were taken only for that"
Hon. Said Musa
"and also for debt servicing"
Jules Vasquez
"So is that indicative sir of a financial crisis. If we have to take on 36 million U.S. on a 1 year term?
Hon. Said Musa
"No its a case of... well its an interpretation however you want to put it. Clearly I am saying that yes we are going through a difficult financial period and there is no secret about that and I certainly intend to make no secret about that. It is a difficult financial situation but I believe it is managable. I believe working together government and people, with the social partners, we'll work our way through this difficulty. I have no doubt about that. I am very confident about that.
Jules Vasquez
"So in your view was it reckless to..."
Hon. Said Musa
"Thank you" (picks up folder to leave)
Ernesto Vasquez - Press Secretary
"It's all over!"
And while the PM's press secretary Ernesto Vasquez cut Jules off at the end, what the prime minister basically admitted to was that when the government took on those loans, the finance minister Fonseca knew he would have to take another loan just to pay that first loan off.